CBN restates recapitalisation will build stronger, inclusive banks to support SMEs

*The Central Bank of Nigeria explains the banking recapitalisation policy is designed to strengthen the country’s financial system, improve credit access to the real sector, and empower financial institutions to play a catalytic role in achieving the $1 trillion economy target by 2030

Gbenga Kayode | ConsumerConnect

The Central Bank of Nigeria (CBN) has restated the banking recapitalisation policy is formulated to strengthen the West African country’s financial system, improve credit access to the real sector, and empower financial institutions for “a catalytic role” in attaining the desired $1 trillion economy aspiration by 2030.

ConsumerConnect reports the CBN explained the ongoing recapitalisation of Deposit Money Banks (DMBs) is quite central to achieving the Nigerian Government’s ambition of building a $1 trillion economy target in the next five years.

Mr. Philip Ikeazor, Deputy Governor for Financial System Stability (FSS) at CBN, noted this Friday, November 7, 2025, at the three-day retreat of the Association of Corporate Affairs Managers of Banks (ACAMB), held in Abeokuta, Ogun State capital.

Dr. Olayemi Cardoso, Governor of CBN

Shedding light on the strategic importance of banking sector recapitalisation, Ikeazor described policy as “a journey, not a destination”.

It is recalled the CBN March 2024, had announced new minimum capital requirements for commercial banks — ₦500 billion for international banks, ₦200 billion for national banks, and ₦50 billion for regional banks respectively.

Represented at the event by Mr. Ibrahim Hassan, the CBN Deputy Governor for Financial System Stability as well emphasised the fundamental objective of the ongoing exercise is to build commercial banks that are not only bigger but stronger, well-governed, and inclusive in the banking industry.

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“The true goal of the exercise is not merely to create bigger banks but better banks—banks that are safe, sound, innovative and inclusive,” said he.

The Bankers’ Bank stated that well-capitalised banks would boost national development, enhance competitiveness, and improve the banking industry’s ability to withstand domestic and global economic headwinds.

Referencing the 2005 recapitalisation that reduced Nigerian banks from 89 to 25 and strengthened the industry, Ikeazor affirmed the current banking reforms are part of broader efforts aimed at repositioning the financial sector under the leadership of Dr. Olayemi Cardoso, Governor of CBN.

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The top CBN official stated: “I am confident that before the deadline in the first quarter of 2026, most banks will have met the new requirements either individually or through mergers.

“This exercise will position Nigerian banks to better support economic growth and compete globally.”

The recapitalisation, Ikeazor noted, is aimed at creating financial institutions capable of supporting big-ticket projects, expanding credit to the real sector, and driving Nigeria’s economic transformation agenda.

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Speaking at the ACAMB retreat Friday also, Prof. Tayo Otubanjo, a marketing expert at the Lagos Business School (LBS) of the Pan-Atlantic University (PAU), in Lagos, urged financial institutions to use the recapitalisation as an opportunity to engage in “real banking” by extending credit to small businesses, traders, and artisans, among others in the Nigerian economy.

Prof. Otubanjo said: “After recapitalisation, banks will have more liquidity. This is the time to push funds into productive sectors and empower those who genuinely drive the economy.”

In his remarks on the essence of the programme, Rasheed Bolarinwa, President of ACAMB, described the retreat, 15 years after some hiatus, as a strategic platform for knowledge sharing among industry leaders, regulators, and financial communication professionals.

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Underscoring the significance of banking recapitalisation, Bolarinwa explained the CBN monetary policy is “not merely a regulatory hurdle” but a catalyst for re-imagining Nigerian banks as stronger and more inclusive financial institutions that could power President Bola Ahmed Tinubu-led administration $1 trillion economy target.

He also stated: “Beyond balance-sheet growth, the real value lies in brand resilience — the ability to deepen trust among customers and investors—and in expanding financial inclusion for MSMEs, women-led enterprises, and the unbanked.”